Binance explains comparison of Libra and SpaceX

Binance Research, the market research department of the large crypto exchange Binance, sees the planned Facebook cryptocurrency Libra as similarly revolutionary for the payment industry as the company SpaceX for space travel. But what are the reasons for this comparison?

Payment industry limited by national borders

In a new study on Facebook Libra, Binance Research concludes that Libra will turn the payment industry upside down in a similar way to Elon Musk’s space industry with SpaceX.The picture is comparable in the payment industry, because here it is central banks that are wielding the scepter, which is why a large network with a considerable number of users and large start-up capital is required to be competitive in the sector.”Since the central banks generally operate very large payment systems (e.g. real-time gross settlement systems), these systems are often only national and not global,” the market researcher continues.Although he does not give examples of private companies that have successfully established themselves in the payment industry, the Binance spokesman explains that they often have a similarly large market power.

“Since the central banks generally operate very large payment systems (e.g. real-time gross settlement systems), these systems are often only national and not global,” the market researcher continues.